Obviously, the game programmers have to opt to include such functionality in their games... but the Xbox 360 will support such functionality.

And I spoke to someone today who told me that the Xbox 360 hardware developers put out a Microsoft-wide call for music files of all sorts of formats... AAC especially, encoded at any and all possible bit rates. Apparently, they wanted them for testing purposes, presumably to make sure that the Xbox 360 would be able to play them all without any problems.

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